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Over the past twelve months, most areas of the grain belt have experienced an increase in the amount of land sold starting with the additional sale activity last fall. A number of states have seen a ten percent or more bump in the number of transactions while others have had a more moderate increase. Also, more acres and larger tracts have been coming to the market. As an example of the increased land sale activity, Farmers National Company sold over 50% more acres during the past twelve months than last year along with a 10% increase in the number of transactions.
The additional land that came to the market recently was met with increased demand, especially for average to above tillable crop land. Higher commodity prices and better incomes, in part from government payments, propelled grain producers to be more aggressive bidders for farmland than during the past several years. Additional buying interest has come from individuals looking for an inflation hedging investment or the security of farmland.
Land sale activity will be
brisk through the end of the year based on the number of auctions booked at
this time. The market will soon know if this increase in sales will continue
through the winter and into the spring sales season as auctions and listings
for that time frame are being or will soon be booked. As long as demand continues
as robust as recently, the prices for good crop land should remain stable to
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|